Roth IRA Conversion Calculator to Calculate Retirement Comparisons

Roth IRA Conversion Calculator Sign

This calculator will help you to compare the net effects of keeping your traditional Individual Retirement Account versus converting it to a Roth IRA.

Not only will the calculator show you the forecasted monthly and annual retirement income for both scenarios, but will also compare the two scenarios before, at, and during your retirement.

And finally, the calculated results also include a button for creating a printer-friendly report.

Note that if you're not sure what a Traditional IRA is, or what a Roth IRA is, or what their respective advantages, disadvantages, and purposes are, please visit the Roth Vs Traditional IRA Calculator.

Important: All calculated results are hypothetical, so be sure to consult a qualified tax professional before making any decisions concerning your IRAs.

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Roth IRA Conversion Calculator

Forecast the effects of converting a traditional IRA to a Roth IRA to see which would contribute more to your retirement income.

Special Instructions

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Age now:Current age:Your current age:Your current age:

Your current age:

Enter the age you want to calculator to use as your age on the day of conversion.

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Retire age:Age to retire:Age you plan to retire at:Age you plan to retire at:

Age you plan to retire at:

Enter the age you want the calculator to use for the age you will be when you start making withdrawals from your IRA (not before age 59-1/2).

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Retire yrs:Retire years:Number of years to receive income:Number of years to receive income:

Number of years to receive income:

Enter the number of years you expect to make withdrawals from your IRA during retirement.

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Pre-ROR:Pre-retire ROR:Pre-retirement rate of return:Pre-retirement rate of return on investments:

Pre-retirement rate of return on investments:

Enter the before-tax percentage you expect to earn on your investments between now and when you retire. Enter as a percentage, but without the percent sign (for .06 or 6%, enter 6).

%
Post-ROR:Post-retire ROR:Post-retirement rate of return:Post-retirement rate of return on investments:

Post-retirement rate of return on investments:

Enter the before-tax percentage you expect to earn on your investments during your retirement years. Enter as a percentage, but without the percent sign (for .06 or 6%, enter 6).

%
Fed tax:Current fed tax:Current federal income tax bracket:Current federal income tax bracket:

Current federal income tax bracket:

Enter your current tax bracket, typically 10, 15, 25, 28, 33, or 35). Enter as a percentage, but without the percent sign (for .15 or 15%, enter 15).

%
Retire tax:Retire tax rate:Federal retirement income tax bracket:Federal income tax bracket during retirement:

Federal income tax bracket during retirement:

Enter the tax bracket you expect to be in during retirement, typically 10, 15, 25, 28, 33, or 35). Enter as a percentage, but without the percent sign (for .15 or 15%, enter 15).

%
IRA balance:Current IRA bal:Current IRA balance:Current IRA balance:

Current IRA balance:

Enter the current balance of the standard IRA you are looking to convert to a Roth IRA. Enter as a dollar amount, but without the dollar sign and any commas.

$
Non-ded port:Non-deductible port:Non-deductible portion of current bal:Non-deductible portion of current balance (optional):

Non-deductible portion of current IRA balance (optional):

If any portion of your IRA contributions did not reduce your taxable income for the year they were contributed, enter that amount here. Enter as a dollar amount, but without the dollar sign and any commas. Otherwise, if all the contributions to your IRA were deductible, then leave this field blank.

$
Tax from:Tax paid from:Conversion tax will be paid from:Conversion tax will be paid from:

Conversion tax will be paid from:

When you convert your standard IRA to a Roth IRA, the portion of your IRA that is deductible will be added to your taxable income for the current year. This means you will need to come up with funds to pay taxes on that additional income. If you plan to pay the conversion taxes out of non-IRA assets (savings account, cash, etc.), choose non-IRA assets. If you plan to pay the taxes from your IRA (thereby reducing the value of your IRA) choose IRA proceeds.

At ConversionTraditional
IRA		Roth
IRA
DeductibleDeductibleDeductible portionDeductible portion:

Deductible portion:

This is the portion of the current balance that was deducted from your taxable income when you contributed it to the IRA.

Non-deductibleNon-deductibleNon-deductible portionNon-deductible portion:

Non-deductible portion:

This is the portion of the current balance that was not deducted from your taxable income when you contributed it to the IRA. In other words, you already paid federal taxes on this amount.

Forgone fundsForgone fundsForgone investment fundsForgone investment funds:

Forgone investment funds:

This is the amount used to pay the conversion taxes. This figure is used to calculate the amount of interest earnings you will give up by paying conversion taxes out of your savings rather than leaving that amount in savings to earn interest.

Conversion amtConversion amtConversion amountConversion amount:

Conversion amount:

This is the amount that will be converted to a Roth IRA. If you chose to pay the conversion taxes out of your IRA, then this amount will be reduced by the amount of the conversion taxes.

Conversion tax pdConversion tax pdConversion tax paidConversion tax paid:

Conversion tax paid:

If you chose to pay the conversion taxes out of your IRA, then this is the amount that will be subtracted from your IRA before it is converted to a Roth IRA.

Comparison balComparison balComparison balanceComparison balance:

Comparison balance:

These are the amounts that will be used to compare the net effect of converting from a Standard to a Roth IRA. If the standard portion shows more than the actual balance, that is because we are including the conversion tax savings that will occur if you keep your funds in the standard IRA.

From Now Until Retirement AgeTraditional
IRA		Roth
IRA
Deductible balDeductible balDeductible balanceDeductible balance:

Deductible balance:

This is the estimated future value of the deductible portion of your standard IRA.

Non-deductible balNon-deductible balNon-deductible balanceNon-deductible balance:

Non-deductible balance:

This is the estimated future value of the non-deductible portion of your standard IRA.

Forgone valueForgone valueForgone investment valueForgone investment value:

Forgone investment value:

This is the estimated future value of the investment that would otherwise be used to pay conversion taxes. If the amount is n/a, it means you chose to pay the conversion taxes out of your IRA.

Roth balanceRoth balanceRoth IRA balanceRoth IRA balance:

Roth IRA balance:

This is the estimated future value of your Roth IRA if you were to go ahead with the conversion.

Comparison FVComparison FVComparison future valueComparison future value:

Comparison future value:

This estimated future value of both scenarios for comparison purposes.

Income During RetirementIncome During RetirementDuring RetirementDuring RetirementTraditional
IRA		Roth
IRA
Annual deductibleAnnual deductibleAnnual deductible incomeAnnual deductible income:

Annual deductible income:

This is the estimated annual after-tax income that might be generated by the deductible portion of your traditional IRA during retirement.

Ann non-deductibleAnnual non-deductibleAnnual non-deductible incomeAnnual non-deductible income:

Annual non-deductible income:

This is the estimated annual after-tax income that might be generated by the non-deductible portion of your traditional IRA during retirement.

Annual investmentAnnual investmentAnnual investment incomeAnnual investment income:

Annual investment income:

This is the estimated annual after-tax income that might be generated by the conversion tax savings that would result from not converting your traditional IRA to a Roth IRA.

Annual Roth IRAAnnual Roth IRAAnnual Roth IRA incomeAnnual Roth IRA income:

Annual Roth IRA income:

This is the estimated annual after-tax income that might be generated by your Roth IRA.

Comparison TotalsTraditional
IRA		Roth
IRA
Annual after-tax incAnnual after-tax incTotal annual after-tax incomeTotal annual after-tax income:

Total annual after-tax income:

The left-hand column is the estimated annual after-tax income that might be generated by the combination of the deductible, non-deductible, and conversion tax savings related to keeping your traditional IRA as is.

The right hand column is the estimated annual after-tax income you might earn from your Roth IRA.

Mon after-tax incMonthly after-tax incTotal monthly after-tax incomeTotal monthly after-tax income:

Total monthly after-tax income:

The left-hand column is the estimated monthly after-tax income that might be generated by the combination of the deductible, non-deductible, and conversion tax savings related to keeping your traditional IRA as is.

The right hand column is the estimated monthly after-tax income you might earn from your Roth IRA.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools

Notes

Things to keep in mind when using the calculator.

Crystal Ball Predictions

While researching the information needed to build this calculator, one thing became clear -- no two Roth IRA calculators contain the same entry fields -- much less generate the same results.

The reasons for this phenomenon probably stem from the fact that they are all making crystal ball assumptions and predictions.

Can You See Into the Future?

To forecast the exact comparative consequences of converting your traditional IRA to a Roth IRA, you would need to be able to make precise predictions about the following details the calculators depend on for the calculations:

  • Precisely when you will retire and how long you will live.
  • Your specific state and federal tax bracket during each remaining year of your life.
  • All changes to tax laws between now and when you die.
  • How much you will need to withdraw from your retirement account each year of your retirement.

Well, since few of us even know for certain what tomorrow will bring, making predictions about the state of our health, wealth and tax laws years into the future is probably not a good investment of your time.

However, what is a good investment of your time, is taking the time to learn what an Individual Retirement Account (IRA) is, what a Roth IRA is, their advantages and disadvantages, and how they compare to other retirement investment options.

Saving for Retirement is Only Half the Equation

While contemplating contributing to an IRA or converting to a Roth IRA, be sure to keep in mind that investing and saving for retirement is only half the equation.

After all, if you have a mountain of debt on the day you retire, the proceeds from your retirement investment funds will have to go toward paying bills instead of paying for airfare to remote, tropical beaches.

Therefore your retirement might be better served by using extra money for paying off high interest debt (Invest in Your Debt Calculator).

Just the Honest Basics Please

While I'm by no means an expert in retirement investment options, I do have one important quality that should make what I have to say worth reading:

I'm not trying to sell you an IRA -- traditional, Roth or otherwise.

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Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.